consultation report

ii

2011 TRANSMISSION DEVELOPMENT PLAN

Consultation Report

[ T h i s p a g e i s i n t e n t i o n a l l y l e f t b l a n k . ]

iv

Table of Contents

1. INTRODUCTION .................................................................................................................................. 1

2. CONSULTATION PROCESS .................................................................................................................. 1

2.1 Public Consultation ....................................................................................................................... 1

2.2 Other Consultation Meetings ....................................................................................................... 1

3. FOCUS OF THE CONSULTATION ......................................................................................................... 3

3.1 Volume I: Major Network Development....................................................................................... 3

3.2 Volume II (Part 1): Operations and Maintenance ......................................................................... 3

3.3 Volume II (Part 2): Metering ......................................................................................................... 3

3.4 Volume III: System Operations ..................................................................................................... 3

4. RESPONSE ........................................................................................................................................... 4

5. SUMMARY OF COMMENTS ................................................................................................................ 5

Tables

Table 1 Distribution of Participants ..................................................................................................... 4

Table 2 General Issues ......................................................................................................................... 6

Table 3 Luzon Grid Issues .................................................................................................................. 30

Table 4 Mindanao Grid Issues ........................................................................................................... 34

Table 5 Visayas Grid Issues ................................................................................................................ 36

Annexes

Annex A Pro-forma Invitation

Annex B Broadsheet Publications

Annex C DoE Meeting Highlights

Annex D List of Participants

[ T h i s p a g e i s i n t e n t i o n a l l y l e f t b l a n k . ]

1

1. INTRODUCTION

In response to the changes in the electrical transmission system and to the needs of its

customers across the country, NGCP undertakes the annual updating of the Transmission

Development Plan (TDP). Republic Act No. 9136 or the “Electric Power Industry Reform Act

of 2001 (EPIRA)” mandates NGCP to consult the Electric Power Industry Participants in the

preparation of the TDP.

This report contains the proceedings of the public consultations for the 2011 TDP. It explains

NGCP’s position and response to the questions, comments and inquiries raised during the

various consultation meetings.

2. CONSULTATION PROCESS

The consultation process started even prior to the conduct of simulation studies when NGCP

met with district offices together with major customers nationwide, to validate the

substation forecast and discuss any significant development that may require expansion of

transmission facilities.

Upon completion of the TDP Consultation Draft and meeting with DOE and TRANSCO, NGCP

formally started with the consultation process with the posting of the Consultation Draft

(Volumes 1 to 3) on NGCP’s corporate website (www.ngcp.ph) starting 13 December 2011.

The pro-forma invitation (please see Annex A), which was signed by the NGCP President,

were distributed nationwide to the grid customers.

To reach to a greater audience, NGCP published the announcement for the Public

Consultation on two major broadsheets (see Annex B), The Philippine Star and Philippine

Daily Inquirer on 11 December 2011 and 10 December 2012, respectively.

2.1 Public Consultation

NGCP conducted the consultation meetings with the stakeholders by region:

Luzon – 05 January 2012 at Sulu Hotel, Diliman, Quezon City

Mindanao – 10 January 2012 at Marco Polo Hotel, Davao City

Visayas – 13 January 2012 at Parklane Hotel, Cebu City

2.2 Other Consultation Meetings

NGCP also conducted separate presentation meetings with major stakeholders:

Philippine Electricity Market Corporation (PEMC) – 22 November 2011 at PEMC Office,

Robinsons-Equitable Tower, Ortigas Center, Pasig City;

2

Grid Management Committee (GMC) and Distribution Management Committee (DMC) –

13 December 2011 at the NGCP Office;

Manila Electric Company (MERALCO) – 15 December 2011 at Lopez Building, Meralco

Compound, Ortigas Avenue, Pasig City;

Department of Energy (DOE) –The first consultation meeting was held on 20 September

2011 at the NGCP Building, Quezon Avenue Corner BIR Road, Diliman, Quezon City. Present

in the meeting were the department undersecretaries and directors of the different

bureaus.

The second meeting with DOE was held at the PEMC Office Robinsons-Equitable Tower,

Ortigas Center, Pasig City, on 05 December 2011 with no less than DOE Secretary Jose Rene

D. Almendras presiding. The highlights of this meeting are listed in Annex C; and

National Transmission Corporation (TransCo) – NGCP met with the National Transmission

Corporation on two occasions to discuss the TDP Consultation Draft. The first was on 12

September 2011 at NGCP Office while the second meeting was on 04 January 2012 at the

TransCo Office.

3

3. FOCUS OF THE CONSULTATION

The public consultation is a venue and opportunity for the stakeholders to provide feedback

and comment on the content and scope of the TDP. The three-volume TDP consists of:

Major Network Development (Volume I), Operation and Maintenance Programs (Volume II,

Part 1), Metering Services (Volume II, Part 2) and System Operations (Volume III, Part 1).

3.1 Volume I: Major Network Development

This report focuses on the proposed network expansion and upgrades which are based on

the system simulations studies conducted by NGCP.

3.2 Volume II (Part 1): Operations and Maintenance

This report covers the plans to ensure the network’s reliability and capability to

continuously provide the level of power quality required by the industry. Included herein

are the proposed plans for the rehabilitation, replacement, repair and/or maintenance of

transmission and sub-transmission lines and substation equipment covering each grid.

3.3 Volume II (Part 2): Metering

This report covers the proposed capital projects for expansion, upgrade, rehabilitation and

replacement programs of NGCP for Transmission Revenue Metering Facilities. It also covers

the acquisition of capital equipment and common-use infrastructure for revenue metering

service.

3.4 Volume III: System Operations

This report covers the proposed upgrading, restoration, replacement, repair and/or

maintenance projects for the telecommunication systems and infrastructures, protection,

SCADA/MBSC and other supervision-related applications and equipment necessary for the

effective management of the national power grid and the system’s stability, and in

dispatching generation, including but not limited to market operations and arrangement for

ancillary services.

4

4. RESPONSE

A total of 187 stakeholders across the archipelago representing 56 electric cooperatives, 16

private distribution utilities, 40 generation companies, 60 non-utility customers, 6

government agencies and 9 non-governmental organizations participated in the public

consultation meetings. Shown below is the breakdown of the attendees from each grid.

Table 1 Distribution of Participants

Category Luzon Visayas Mindanao Philippines

Cooperative 22 16 18 56

Private DU 10 3 3 16

Government 3 2 1 6

Generators 21 14 5 40

Industry 35 14 11 60

Others (Academe, NGO’s, etc.) 6 1 2 9

TOTAL 97 50 40 187

5

5. SUMMARY OF COMMENTS

The comments, issues and questions raised during the public consultation meetings and

sent to [email protected], and NGCP’s response to each of them, are summarized in

the following pages.

2011 Transmission Development Plan Public Consultation Report

6

Table 2 General Issues

Issues Concerned

Party

Comments NGCP Response Issues Concerned

Party

Comments NGCP Response

1 TDP Preparation

TransCo TransCo expressed its desire not only to be

consulted but to be actively involved in the TDP

preparation.

TransCo admits that presently, they do not

have yet the technical capabilities in using the

special application software for system

simulation studies.

NGCP has invited TransCo to participate in an

in-house training on power system studies and

transmission planning. This is part of NGCP’s

efforts to extend assistance to TransCo in terms

of capacity building for the latter’s technical

team.

CEPALCO There seems to be some lapses in the

transmission development planning if it is not

based on an integrated resource planning

approach. We understand that this is not solely

the responsibility of NGCP. However, we

suggest NGCP to initiate discussions with DOE,

with generators and distributors as well, in the

preparation of the PDP and TDP under an

integrated resource planning framework..

With the enactment of EPIRA, generation

planning becomes DOE’s responsibility and

transmission by NGCP. NGCP assures that

before the conduct of the simulation studies for

the TDP, there has been good coordination

between NGCP and DOE. NGCP will also take up

the issue with DOE.

2 Proposed Projects

TransCo Are those projects being declared by DOE in the

list include indicative projects?

Both committed and indicative are included in

DOE’s plan.

Per agreement with DOE, NGCP will follow the

generation line up listed in the DOE Power

Development Program (PDP). It should be

noted that the PDP and TDP are updated on an

annual basis.

TransCo TransCo is aware of the November 2010

application of NGCP. Our observation was there

were notable changes from the said application

Some other projects were already identified

but were not filed yet because of prioritization

and transmission tariff impact consideration.


7

compared to the 2011 TDP when the draft

came out some time mid 2011. How come

there were major additional projects in such a

short time?

NGCP needs to implement the projects this

early, thus the decision to file them, to meet

the target completion of these new projects.

ANECO Assuming the years written on the TDP are the

indicative years that the plants will be online,

have you validated if the proposed power

projects will really be online on the indicated

years therein? There are instances that we

cannot implement the power projects on the

year it is expected to come in.

There are two planning inputs. The first is the

planning forecast and the other one is the

generation capacity addition. Between the two,

the forecast is pretty straight forward while

capacity addition is difficult to follow. NGCP’s

problem is on the generation capacity addition.

Our agreement with the DOE is that the PDP,

which contains both the load forecast and

capacity addition, will be the official reference

line. So basically, NGCP just follow what is in

the PDP.

3

Generation

Capacity Addition

TransCo According to NGCP. 4,188 MW is the total

conventional and renewable energy for Luzon

for the next 20 years based on DOE’s list, but

during the hearing at the ERC with the

presentation of NREB, what was initially

proposed was about 760 MW. How will you

explain this discrepancy?

NGCP follows the generation line up listed in

the PDP. DOE may have come up with different

figures on the installation target for certain

years, the reason for any discrepancy in the

figures.

The 4,188 MW is the total of conventional and

renewable energy. The renewable energy for

Luzon is 432.3MW. In terms of installation

target for RE, NGCP will follow DOE which

among the power plants will be included in the

installation target. According to DOE,

whichever comes first will get the slot for the

allocation target.

GMC Do all these generation capacity addition No, not all of these projects have GIS. Some of


8

projects already have completed the grid

impact studies?

them have not yet contacted NGCP for the

conduct of their respective GIS. As long as a

project is included in DOE’s list, NGCP will also

include those projects in the assumptions.

GMC Are these projects committed? Considering

indicative generation projects may impact to

higher wheeling charges.

From a transmission planning perspective, it is

better that these indicative generation projects

be included in the assumptions. However, the

ERC would have to evaluate the level of

commitment of these projects before it

approves any associated transmission

expansion investment. It is important to note

that since the TDP is updated on an annual

basis, should there be changes in the status of

the generation projects, NGCP can easily reflect

them in the transmission plan.

GMC At what point do you change the generation

capacity addition projects from indicative to

committed?

NGCP relies on DOE being the agency

responsible for generation planning.

Global Business

Power Corporation

Is there already a budgetary allocation based

on the time frame you have mentioned for your

demand and transmission capacity projects?

NGCP is committed to implement and complete

all ERC-approved projects, in which the

corresponding capital expenditure (CAPEX)

program (where the annual budget for each

project is indicated) is already part of the ERC’s

Final Determination (FD). For the new projects

not included in the FD, they will be filed with

the ERC for provisional approval.

4 System

Operations

TransCo What is NGCP’s data center standard? It is consistent with IEC standard. (NGCP will

provide a copy of this policy at the NGCP-

TransCo Data Center).

TransCo

Will SO still procure any protective relay or will

not anymore?

There is a delineation of responsibilities

between O&M and SO groups of NGCP

regarding this.

MERALCO What is the standard of SO for substations? NGCP follows that of the IEC, but plans to adopt


9

other standards once the Smart Grid is

implemented.

MERALCO Any concrete plan on how to implement Smart

Grid technology?

In all new projects, NGCP is already

implementing Smart Grid technology based on

IEC standard.

TransCo NGCP intends to use OPGW fibers for both M1

and M2 line protections. How can redundancy

be addressed under this scheme?

Only stations within fiber loops—e.g., with

OPGW routes in different directions—shall use

fiber for both M1 and M2. Otherwise,

microwave radio shall be used to provide the

redundant path for the required differential

protection.

Aboitiz Power

Hedcor

What are SO’s requirements for the RE systems

that may be coming in? What are the

equipment needed on our side?

NGCP is working closely with DOE on how to

establish these requirements for RE sources or

embedded generation. NGCP is revising the

specifications that will enable them to integrate

these RE sources to the system. For REs, NGCP

would want them to be connected through

fiber links.

Currently, we only have one market for Luzon

and Visayas.

The objective is to make the system operation

as a single entity. That is complementary to the

market objective which is to make one open

market. The hierarchical design is for efficient

dispatching.

5 Telecoms and

SCADA

TransCo To support the proposed replacements due to

limited bandwidth, a summary of channel

loading or utilization must be included in

NGCP’s TDP.

Do we have some system to monitor whether

all these equipment have been fully utilized?

NGCP can provide the SCADA/EMS reports,

bandwidth demand per typical node and

bandwidth allocation in backbone.

For SCADA applications, NGCP can produce the

report they submit on a day to day basis, e.g.,


10

Do we have that assessment?

the EMS applications.

For the bandwidth utilization of telecom, NGCP

can provide based on the breakdown of the

traffic. NGCP can describe which part of the

bandwidth is used by which application and

which network element manages this particular

traffic.

NGCP can provide the following:

• SCADA/EMS reports

• Bandwidth demand per typical node

• Bandwidth allocation in backbone

TransCo What are those EMS applications in the new

SCADA that you are proposing?

Higher version of the RTU data storage,

advance estimator and contingency analysis in

order to consider the market operation.

TransCo Can the IT equipment/facilities needed by SO

be provided by corporate IS/IT?

All IT equipment specs and acquisitions

(outside SCADA equipment), including those

needed by S.O., are supervised by our IT

Department.

TransCo Is DOST or DOTC coordinating with NGCP

regarding the required NDN knowing that they

are trying to revive the telecommunication

stockroom of the Government?

What is the commercial agreement for such? Is

there a rebate to the transmission charge (PDS)

in as much as there is an extra income for that?

Yes, DOTC already approached NGCP. Also,

PAGASA is utilizing NGCP’s backbone. However,

there is no existing commercial agreement with

DOST nor with DOTC yet with regard to the

PAGASA use of NGCP channels inasmuch as the

channels are used for public service. NGCP

does not derive any extra income on PAGASA’s

use of the these facilities

TransCo Why is split type highly recommended in TDP?

This type is more difficult to maintain as the

transceiver is installed on top of antenna

tower.

As stated in the TDP, the energy-efficient (and

cheaper) split-type radio technology shall be

adopted where feasible (e.g., for up-to-STM1

radio links) to optimize radio transmitter

power, eliminate waveguide-caused problems


11

and minimize dependence on air-conditioning

requirements (and reduce failure rates caused

by overheating).

TransCo Can we use lease channels as back up in some

areas to reduce CAPEX? A study shall be

conducted in the aspects and be included in

TDP.

Leased channels are indeed being used as (less-

secure) backups where feasible. They are also

used to provide short-term communication

facilities. Incorporating in the TDP the

economic selection study for each permanent

telecom link would be rather cumbersome (and

may not be necessary given the knowledge of

existing public infra and prevailing lease

rates)—perhaps we can address this issue in a

more specific manner?

TransCo Is it possible to have a 100% physical

redundancy (1+1) via OPGW? Existing

transmission lines, in some areas, may not

allow such configuration. Is this not very

expensive?

Not all stations can be provided with 1+1

physical redundancy via existing OPGW.

Microwave radio provides an alternate route in

some cases to attain the 1+1 mode.

TransCo Are the installations of IP ready S/S

automations synchronized with the

installations of IP connectivity?

NGCP already has IP connectivity and their

applications are migrating towards the use of

this method of transport. The new S/S

automation systems are thus specified to

operate using IP-mode standards upon

commissioning.

6 Right-of-Way DOE The DOE recognized the difficulty of acquiring

right-of-way for transmission projects and, at

times, local government units intervene in

locating the transmission routes. In response,

DOE is working with different government

agencies in identifying Projects of National


12

Significance (PNS) to ensure their timely

completion. NGCP’s transmission projects may

well qualified as PNS.

GMC Nowadays, it is difficult to secure right-of-way.

It is critical that NGCP should identify which

generation projects are committed for planning

purposes. How are the indicative plants taken

up in your TDP?

NGCP still considers the indicative power plants

because there are cases wherein they require

transmission reinforcements. However, once a

project was identified, we consider it as a

generation-associated project and identify

which power plant triggers the need for that

project.

7 Command Center MERALCO Will the command center of NGCP be manned? Yes it will be manned 24/7. We will be in close

coordination with NDCC (NDRRMC).

8 Legal Issue

TransCo On Hanjin reimbursement issue, would NGCP

be paying for it since it will be reclassified as

transmission?

It was clarified by TransCo that based on EO

701, TransCo has to pay but since it will be

reclassified as Transmission, NGCP has to pay

for that line.

In its latest letter, Transco would like to

transfer to NGCP the facilities so that the latter

can operate and maintain them.

San Miguel Power

Corporation

Suggests NGCP to advise the electric utilities

that what should be covered by our

Distribution Service Agreement are distribution

wheeling services agreement. The transmission

services agreement are still being signed by

NGCP and utilities should only sign the

distribution wheeling services agreement.

NGCP will follow ERC’s rules on the commercial

relationship between the customers and its

service providers.

9 Congestion

Aboitiz Power Is the Lumban-Bay Upgrading scheduled in

2013 similar to the MakBan-Calauan-Kalayaan

line project which is expected to solve the

congestion problem in that area?

NGCP confirms that the Lumban-Bay Upgrading

Project is the same with the Kalayaan-MakBan

line which is now being upgraded to four

bundle 795 MCM.

10 Tudaya I (6 MW)

and Tudaya II (7

GMC How come these projects are not included in

your list when they are in the pipeline of GIS?

NGCP based its study assumptions on the

generation line up contained in DOE’s PDP. If


13

MW) the proposed generation project is not included

in the PDP, it is likely that it is not also included

in NGCP’s list.

11 N-1 and N-2

TransCo Had there been a decision on the issue

regarding the N-1 and N-2 consideration during

the planning and operation perspective? Has

there been a resolution?

NGCP is looking at N-1 from two different

perspectives - from a planning perspective and

from an operation perspective. From a planning

perspective the system is intact; all the

elements are complete when you apply the N-

1. From an operation perspective, the system

is already altered when N-1 is applied.

NGCP maintains its position that the application

of N-1 should be taken in planning and

operations perspective.

TransCo How will you consider NGCP’s planning

methodology, deterministic or probabilistic?

Woudn’t probabilistic approach be more

appropriate?

NGCP’s planning methodology, at the moment,

is based on deterministic approach. NGCP is

still waiting for ERC’s recommended approach.

12

Renewable

Energy

AES Masinloc We have noticed that RE is already considered

in the 2011 TDP. Have you considered REs that

will be connected through the distribution

system or just those that will be connected in

the transmission? In the event that the RE is

not suitable to connect to distribution system,

how will it be considered in the succeeding

TDPs?

NGCP will propose a guideline that will govern

RE’s connection to the grid.

MERALCO Any updates on RE penetration limit of NGCP? NGCP has not finalized yet the penetration limit

study.


14

Aboitiz How will these RE projects going to be

integrated? Is that part of the challenges that

NGCP is seeing in the next years?

One of NGCP’s mandates under RA 9513 is to

provide priority connection to RE sources.

Given the intermittent nature of some RE,

there should be a different set of technical

requirements to govern them which are not yet

included in the Grid Code. NGCP is currently

developing these requirements which will be

the basis in integrating RE to the grid.

Aboitiz To date, we only have one wind power project

and that is located in North Luzon.

Operationally, can NGCP provide us an insight

as to the integration of that plant to the

transmission system?

We already have informed the DOE with the

need to conduct a study called Renewable

Energy Integration Study (REIS) that will

complement the standard Grid Impact Studies

(GIS). The main purpose of the REIS is to take

into consideration the intermittent nature of

the RE sources (wind and solar PV). NGCP is still

developing the methodology of the REIS.

CEPALCO Did NGCP recommend to DOE the 50 MW

maximum limit of solar PV to be installed to

avoid introducing problems of intermittency

and interruption in the grid?

First, it is the DOE and not NGCP that sets the

installation targets for RE. Based on NGCP’s

recent study which was submitted to the DOE,

Mindanao does not have adequate regulating

reserves to support intermittent RE. That could

be one of the reasons of DOE for reducing the

installation target.

CEPALCO The objectives of system operations should be

attached with the corporate objectives to

accelerate access to RE sources. It is observed

that NGCP is somehow trying to obstruct or

delay the entry RE sources and to limit the

amount of embedded generation in our

system. What is the intent of NGCP in regards

to these RE sources?

NGCP’s mandates under RA 9513 is clear – to

provide priority connection to RE and to

establish the penetration limit for intermittent

RE. Any recommendation on the integration

capacity will be based on the results of the

study.

For embedded generation, NGCP is not

obstructing their entry. According to OATS

Rules, it should be GMC that will be setting the


15

limit of the embedded generation.

Conal Holdings

Corporation

Is the system ready for RE? This will depend on the location, capacity and

timing of RE projects. We have completed the

initial study that will determine the capacity of

the grid to integrate RE. To make the system

more robust, NGCP has ongoing projects

associated with RE in northern Luzon (San

Esteban-Laoag Transmission Upgrading Project)

which includes the expansion of the Laoag

substation for the incoming wind power plant.

13 Embedded

Generation

MERALCO What is the status of NGCP’s proposal to limit

Embedded Generation?

NGCP is still in consultation with other

stakeholders.

14 O&M

TransCo How do NGCP consider SPS? What is your

reliability level for SPS?

SPS was revised to address simultaneous

trippings. N-1-1 cases do not require SPS.

However, N-2 cases require SPS.

TransCo In the multiple tripping of Tayabas substation,

the MBSC display was not updating due to UPS

being affected by said trippings. What is the

plan of NGCP to resolve this problem?

The UPS has already been replaced.

TransCo Some equipment which is due for replacement

does not meet the economic service life set by

ERC. Is NGCP inclined to provide good products

and good maintenance services to extend said

equipment economic life span?

The economic service life is not the only driver

in replacing the equipment but the actual

condition whether it is still good or is already

deteriorating. However, our experience shows

that as the equipment age, more and more

problems are already manifesting. Therefore

for planning purposes we need to already plan

for replacement of equipment that shows a

pattern of failures.


16

There is really a need for O&M to have a good

maintenance strategy to extend the life of this

equipment since ERC has put a cap on O&M’s

expenditures.

TransCo Why do we need to monitor water elevations

for hydro plants when it is the obligation of the

generators to inform the customers of the

availability of supply?

In order to monitor reserves especially for

Mindanao in ensuring the stability of the grid.

TransCo For O&M expenditures, may we be clarified on

2 issues: On the secondary devices - start from

where to where?

What about in the substation?

Starts from the control system, line protection

even up to the battery system because these

are fault clearance system. Every device in the

system is somehow connected to the function

of the whole system. For example, if the

battery is not working, the system cannot

supply the control and the protection system.

TransCo You have said that a lot of the equipment

reached the useful economic life, what if those

equipment still passes the test of Material

Testing Division (MTD), what is your plan? Do

you intend to replace everything?

NGCP needs to establish a trend. If there is a

significant change in the trend, it will be

analyzed and decided if there is a need for

replacement. There must be other

consideration. Take for example, if the power

factor tests of the insulation of equipment

show signs of deterioration we need to plan the

replacement as part of the pro-active measure.

TransCo Have you come up with the policy regarding

spare parts?

NGCP has a policy on spares. But even for

spares, we cannot acquire the desired level of

spares. NGCP’s strategy is to acquire the spares

from major engineering projects that involve

replacement of equipment. Some of the

replaced equipment which are in good

condition will be refurbished and will serve as

spares. The approved budget is a constraint to

establish the desired level of spares.


17

TransCo Is equipment restoration time considered in the

determination of appropriate connectivity for

teleprotection system? There are links with

higher speed/capacity but need longer time to

restore.

Yes, NGCP is taking into consideration the

equipment restoration time in determining the

appropriate connectivity for teleprotection

system.

TransCo To support replacements of operational but

obsolete equipment, a summary of channel

loading or utilization must be included in

NGCP’s TDP.

Operational equipment that need to be

replaced because of obsolescence refer to (a)

those with no available spare-parts support,

and therefore risk run-to-failure outage, or (b)

those that no longer work with existing

standards. This consideration has little to do

with channel loading or utilization.

The respective descriptions of the aging of

specific network elements are described in

System Profile (Section 2) of each discipline. For

example, in the case of Telecoms, Table 2.1.1

lists the significant network components (e.g.,

M/W Radio, OPGW, OLTE, PLC/PSE) and

provides respective overviews—per network

element and per region—in relation to the ERC-

defined economic lives. (Detailed accounts for

each unique equipment installed at a particular

station are as recorded in the Fixed Assets

Register.)

TransCo Why do we have to phase out PLC? PLC is the

most reliable link in power system

teleprotection.

Differential protection is preferred over

distance protection—PLC cannot carry

differential signals because of its limited

bandwidth. And even for distance protection,

we do not agree that PLC is the most reliable

link in all cases because of the less predictable


18

effect of noise on its analog signals.

TransCo Why do you have to implement projects in-

house? This has no warranty, supplied

equipment can be used in other areas and it

affects maintenance works.

As stated in the TDP, in-house implementation

optimizes in-house engineering resources,

minimizes implementation time and

synchronizes construction with operational

priorities. This results in lower overall cost,

efficient design (e.g., no need to replace

serviceable components), and less interruption

to operations (i.e., no special shutdowns). Of

course, all new equipment has warranty.

DOE DOE Secretary inquires about the inventory of

Polychlorinated Biphenyl (PCB)

NGCP confirms that all equipment with PCB has

been identified (first phase) and there is an

ongoing program to replace/manage them in

compliance with environmental regulations.

SN Aboitiz Power

Benguet

What are the measures that NGCP is

undertaking in relation to the hazards in

landslide prone areas?

NGCP embarks on mitigating measures such as

building massive concrete structures or

relocating structures to more stable sites. NGCP

also undertakes pilot testing of vetiver grass

that prevents soil erosion.

MERALCO What is the plan of NGCP on transformer which

exceeded its economic life?

NGCP has a replacement plan for these old

transformers.

MERALCO Does NGCP have an upgrading/replacement

program so MERALCO can align to the

program?

NGCP regularly submits to DOE its Grid

Operating Maintenance Program (GOMP)

which covers a 3-year planning period.

SOVECO Do you have a record on the percentage of the

economic life of equipment to determine how

much it contributes to failure and if it is due for

replacement?

The suggestion is duly noted. The statistics is

more applicable to major equipment of the

transmission system such as transformers,

circuit breakers and the like. For the statistics

of the percentages, NGCP has the details of

these incidents before it arrived at the

conclusion to replace these components.


19

GMC Have you considered the costs that sabotaged

lines will incur in the O&M CAPEX budget?

It is difficult to anticipate when and where a

sabotage will take place. At any rate, budget

will be allocated to repair any damaged facility.

15 Metering

San Miguel

Corporation

Who checks your meters’ accuracy and

calibration? Suggested annual audit of the

meters by third party.

Meters and instrument transformers are

checked by NGCP and by ERC.

TransCo Do we still have manual downloading?

Yes, if there is a problem in communication.

TransCo In the event that there is no problem in

communication, is everything automated?

Yes, the only limitation is the availability of

networks to support data communication

requirements.

MERALCO For AMR metering, what technology is NGCP

looking at? MV90?

A newer version of MV90 which is capable of

using IP-based telephony and GPRS to connect

to the meters is being acquired to replace the

existing system.

MERALCO In regards to PT/CT testing or metering, who

should shoulder the testing of metering

equipment?

Based on the Grid Code, the asset owner

should shoulder the cost of testing.

MERALCO MERALCO requested NGCP to consider the

timing of meter testing for alternate meters.

NGCP notes this request and will closely

coordinate the timing of the work with the

concerned Customer or Generator.

MERALCO What is the regulator’s economic life for meters

of NGCP? It is 15 years for MERALCO.

For NGCP, it is 10 years.

Do the installations of alternate meters mean

additional charges to the customers’ present

metering service charges?

The installation of alternate meters will add to

the Regulatory Asset Base for revenue

metering, which will be recovered through the

MSP charge. However, the cost of meters is not

really that substantial, and is outweighed by

the benefits of having these installed as we


20

have experienced in Luzon and Visayas.

In regards to the relocation and consolidation

of the metering points, there are customers

with many metering points, will this result to a

substantial increase in the metering charges

even for the existing individual metering

points?

If the only development will be the

consolidation of metering facilities then the

total number of metering facilities will really

decrease. However, through the years, while

there are metering points that are

consolidated, there are also new connections.

This is true not only with the generators but

also with load customers and distributors. Thus,

NGCP does not foresee any significant

reduction in the metering facilities.

Inquired for clarification on the installation of

revenue meters to substation metering

facilities. Does this mean replacement of all the

statistical meters to revenue class meters?

What is the primary purpose of replacing the

statistical meters? Revenue meters are more

expensive.

The cost of the new statistical meters and those

of the revenue meters, which we have

installed, does not have much difference. The

primary purpose is to satisfy the management

directive that we have to meter our own

consumption. Eventually, that will be used as

basis for our payment of our substation energy

consumption.

Is it part of the direction for this upgrade of the

metering system in the grid to be able to

aggregate the demands of your customers?

NGCP upgrade their meters to load profile

capable meters for aggregation of demand for

coincident addition. It allows more flexibility in

terms of computing the total demand of the

customers.

SOCOTECO I What does NGCP consider in their CAPEX

budget, the cost of the relocation or the cost of

new facility?

The cost of relocation/totalization is

approximately the same as the cost of new

metering facility since New metering assets will

have to be installed at the new connection

point. The metering assets installed at existing

Metering Point/s will be retired and will be

included in the spares inventory.

We will not be transferring the metering assets


21

installed at the existing Metering Points to the

new connection point, instead we will be

installing new metering assets.

Mactan Electric

Company

With regard to the rates passed on to the

consumers, we are asking NGCP to observe

prudency in doing its capital expenditure

programming. Are the meters, you are

installing to measure your own consumption,

the same with your load customers?

NGCP is required to pay for its own substation

usage that is why it installs its own meters.

These meters satisfy the basic requirement for

accuracy, functionality and basic costing and

are much less than the main meters. On

prudency, NGCP is a regulated entity and only

implements ERC approved projects that have

gone through prudency test. The age and the

condition of the assets are considered in the

capital expenditure planning.

Mactan Electric

Company

During testing of our equipment like our

metering services, we should not be paying for

the rental of NGCP equipments because we are

charged for its acquisition on your CAPEX.

These technical services are not considered in

the normal operation of NGCP, they are add-on

service provision. When NGCP projects its

operation and maintenance cost it only

considers the regular manpower cost for the

transmission services. However, these charges

are currently under review. NGCP understands

and recognizes your concern.

TransCo Does NGCP report the income from these

technical services?

Yes.

NPC has this customer within our service area

that has an expired TSC that is currently

applying to us. How will this affect our

metering arrangement? Can we assume the

metering of TSC?

At this stage, NGCP does not have plans of

selling the metering assets as yet. NGCP

suggests that the DU install their own meter for

the customer that they will assume or continue

paying NGCP for the metering services

provided.

San Roque Power Does NGCP still do the metering for IPPs which NGCP will take care only of its WESM meters.


22

Corp. have ECA and PPA meters with NPC? There is currently an ongoing discussion

between NGCP and NPC for the former to

divest itself of that task. NGCP, however, can

offer that service if there will be a commercial

agreement binding them and NPC, the IPP and

IPPA.

16 3rd Regulatory

Period

TransCo Why is it that there were modified new projects

that are not included during the 3rd regulatory

application? What are the factors that have

resulted in such?

NGCP took into consideration the following

factors/challenges during the planning period:

a) change of the timeline of the incoming

generators; b) change on new technology; and,

c) changes in system conditions, thus, it is

difficult to foresee which projects should be

filed at once.

TransCo We believe that this planning criterion were

also NGCP’s consideration during the third

regulatory application, how come they were

not considered in the application.

The criteria are the same. However, the

projects that were filed in the 3rd Regulatory

Period had to be prioritized taking into

consideration, among other factors, the impact

on transmission tariff. Thus, not all projects

that were identified following the criteria were

included in the ERC filing.

TransCo Does it mean there will be reprioritization of

projects in the third regulatory?

No, NGCP is committed to implement all the

ERC-approved projects and file new projects

that need to be implemented within the 3rd

Regulatory Period.

TransCo Are the infrastructure projects that you are

mentioning already part of the approved CAPEX

for the 3rd Regulatory Period?

Yes. Actually the infrastructures are part of the

3rd Regulatory, but the issue is NGCP has to

prioritize based on the budget.

It should be noted that relative to the 3rd

Regulatory budget cap, issues such as the need

to address RE connections and Smart Grid

standards, although part of the TDP, may not

be fully addressed.


23

TransCo Do RE-associated projects already part of the

3rd Reg projects?

For the Third Regulatory period, there is no

transmission line reinforcement project that

can be directly associated with RE.

17 Reliability MERALCO There were complaints to GMC regarding

reliability of 69 kv lines, what are the actions of

NGCP on these?

Those reverted to NGCP’s RAB are being

maintained and rehabilitated by NGCP.

18 Leyte-Mindanao

Interconnection

Project

DOE The Secretary noted that the forecast drought

in Mindanao will further highlight the need for

LMIP. Based on the report of Manila

Observatory on the model used to predict the

rainfall pattern, Mindanao will continue to

experience drought in the coming years. To

worsen the problem, siltation is also being

encountered in Pulangi Hydro Plant. For this

reason, DOE has been encouraging investors to

put up non-hydro power plants in Mindanao.

19 Batangas-

Mindoro

Interconnection

Project (BMIP)

DOE DOE is looking forward to this project as it will

support the plan of NPC to fully interconnect

the 69 kV Mindoro Grid.

NGCP clarified that the BMIP does not include

the reinforcement/expansion of the existing

Mindoro transmission backbone.

Palawan, being a potential growth area, can

also be considered in future interconnection

projects.

20

Planning

considerations

DOE The Secretary agreed that generators should be

located, as much as possible, near the load

center (within the island grid) to avoid the

uprating/expansion of existing submarine

interconnection between the islands.

DOE The Secretary inquired on heavily-loaded

corridors and substations in Metro Manila and

Among the substations that continue to exhibit

significant growth are Dasmarinas and Las


24

if the necessary expansions are included in the

plan.

Piñas, both of which have been allocated with

additional transformers.

DOE Adequate transmission facilities must be

ensured for new growth areas such as Clark

Economic Zone, where the newly-developed

international airport will be expanded, the

former U.S Naval Station in Sangley Point

(Cavite), and Panay.

NGCP will consider in the next TDP the demand

forecast in these areas. The Secretary assured

NGCP that DOE will provide updates and

information on potential economic growth

areas.

San Miguel

Corporation

Suggested NGCP to review the 2011 TDP. NGCP

should retain investments in the major loop or

to what are necessary for the improvement of

the grid.

NGCP, guided by the Grid Code, wants to invest

where the need arises. There is already a

resolution where assets are discussed and the

boundaries are defined.

TransCo NGCP needs to come up with a cut-off date for

the receiving of data from DOE. Preferred

timeline is end of first quarter. What level of

forecast do NGCP obtains from DOE?

DOE releases a grid level forecast. This is

validated by NGCP from submission of

application of new generators. NGCP’s forecast

is on the substation level.

GMC Define ideal location for power plants. When we say ideal, it implies that these

locations require minimal transmission

reinforcements only. Further, these refer to the

ideal connection points to proponents, where

they can readily connect without waiting for

any grid expansion or reinforcement.

Conal Holdings

Corporation

There may be some capacities coming in that

could overkill the Mindanao capacities. In your

presentation of the Vol. I (Major Network

Development) for Mindanao, I didn’t see the

100 MW San Ramon coal power project which

will come in by 2016.

The main reason why some capacities that are

coming in may not be included in NGCP’s

assumptions is because they are not included in

the PDP of the DOE.

Aboitiz Power

Hedcor

We want to ask for NGCP’s inputs on how our

on line projects, the expansion of the Sibulan

project and the Sitasimon project, can connect

For the Sibulan, since it is only an expansion,

we can look at the existing connection points.

For the Sitasimon, on the other hand, kindly


25

to your lines. These are already in our

engineering board.

approach one of NGCP’s account officers.

NGCP has not received any formal application

from Hedcor in regards to the proposed

project. NGCP needs to evaluate the proposed

connection schemes to identify the nearest

connection points for the proposed power

plant before conducting the grid impact

studies.

Davao Light and

Power Company

Projects are stemmed from forecasts. What do

NGCP consider the actual or the reliable

capacity of the generating plants?

From a planning perspective, it would be better

for NGCP to consider the maximum capacity of

the power plants rather than the derated

capacity.

21 Request for

Information

DOE The Secretary instructed NGCP to identify its

transmission facilities that are located along

major waterways and report them immediately

to the DOE. The government is clearing all

major waterways of obstructions as part of its

flood control measures.

NGCP will identify the said transmission

facilities and will provide the list to DOE.

TransCo Requested NGCP to provide TransCo with the

list of transmission lines which are beyond 50

years and the NGCP’s assessment and plans on

the said old transmission lines and the list of

other equipment’s age in comparison to the

approved ERC life span on a per substation

basis?

NGCP will provide the list requested.

It is notable that NGCP has an ongoing program

to replace parts of the lines which had been the

cause of many forced outages. For example,

per statistics, the major cause of tripping of

many of these lines is due to insulator failures.

NGCP has programmed the replacement of

substantial number of insulators, with the lines

that have more number of trippings and most

critical ones given priority. This is premised on


26

the condition that shutdown of the lines can be

allowed by the System Operator on an

extended period. During the implementation of

the replacement program, other line hardwares

which are found to be defective will also be

replaced.

Furthermore, wood poles are gradually being

replaced with steel poles or with more reliable

structures such as steel towers, wherever more

suitable or appropriate.

TransCo Requested NGCP to provide them the present

list of transmission lines for the 3200+ MW of

indicative projects.

NGCP can provide the said list.

TransCo Requested NGCP to provide the list of new and

old names of substations.

NGCP can provide the said list.

TransCo Requested NGCP to provide the inter-island

power flow in different scenarios from 2014

onwards for the Negros-Panay-Cebu project.

NGCP to provide the info needed.

TransCo Do you have a periodic asset condition report

that includes what are the conditions of the

asset from commissioning, the supplier, the

basic specifications, significant events that

occurred with these assets to support your

CAPEX programs? Are they available as

reference to NGCP’s observance of CAPEX?

NGCP has this information on various internal

memoranda. NGCP will have to establish this

data so that they can be requested to produce

the report. Every commissioning,

troubleshooting, repair and replacement

should be recorded as to reflect the history of

the equipment. Aside from economic life, NGCP

also considers the condition of the equipment,

the obsolescence and the availability of spares

in replacing the said equipments. Presently the

condition of every asset is being monitored and

the historical records are kept by the

Maintenance and Test Division (MTD) and

district offices that are in-charge of these


27

assets.

Recently NGCP has launched the Enterprise

Resource Planning (ERP) and one of the system

that could collate and summarize asset

condition is the Enterprise Asset Management

System.

Aboitiz Power

Hedcor

There are two drivers for your CAPEX budget

for O&M: the frequency of outages and aging

of equipment. Requested for historical data of

outages of equipment and NGCP’s driver for

aging equipment.

NGCP is more concerned of aging facilities

because most of the outages stemmed from

old transmission facilities. NGCP will provide

the data requested.

MERALCO Any update on the ICCP data requested by

MERALCO?

NGCP already replied to the request of

MERALCO, although, there were some data

that were not provided due to their

confidentiality.

Cebu Energy May we ask for a timeline for the Calung-

Calung-Naga reinforcement and the Naga-Quiot

project?

The Calung-Calung-Toledo-Colon project has

been awarded to the winning bidder in August

2012 with an estimated completion date of July

2013. The Colon-Cebu project started last

December and expected to be finished in the

1st quarter of 2013.

CEPALCO Suggested early weekly advisory from NGCP to

customers so they can also disseminate info

before interruption or outages occur.

There is already a proposal to harness the local

media. The said proposal, which is still subject

to the approval, suggests a 2-3 minute airing of

the affected areas during outages or

interruptions.

22 Asset

Management

San Miguel

Corporation

Assets are found to be poor in quality because

of selection of poor brands and absence of a

program that defines the assets’ standards.

NGCP has already started a standardization

program for purchasing of equipment. There is

a process that defines the list of accredited


28

suppliers.

23 Duties and

Responsibilities

Identification

TransCo How do we divide SO responsibility when it

comes to protection and when it comes to

O&M?

SO is the one preparing the philosophy and also

the technical requirement and it is the O&M

that will implement the replacement.

TransCo The entire hardwires relay, corresponding CT

PT and others will be thru whom?

It will now be the responsibility of O&M.

TransCo The calculation and the setting will be done by

whom?

It will now be the responsibility of SO.

TransCo Are you going towards the direction wherein

the SO will calculate and prepare the setting

and O&M to buy all the relays and set the

relay?

From now on, the responsibility of the

equipment will be transferred to O&M. The

owner of the substation will be O&M.

24 Submarine Cable

TransCo Was there an ERC policy on submarine cable? To date, ERC has not issued a policy yet. In the

December 5 meeting with Sec. Almendras, the

Secretary agreed that generators should be

located, as much as possible, near the load

center (within the island grid) to avoid the

uprating of existing submarine interconnection

between the islands.

TransCo We need policy on treatment of submarine

cable.

Either ERC or DOE will issue such policy.

25 Substation

Naming

Convention

TransCo What is the reason for renaming some of the

substations? Do we really need to do that?

We are basing it on the standard equipment

identification as provided in the Grid Code.

26 Market Operation TransCo For interfacing in the market, shouldn’t it be

the market operator to spend for the interface?

Any expense related to market operation

should be shouldered by the market operator

because they are collecting market fees from

the participants.

Yes, but the system is designed more on data

collection/data forwarding concern. It is more

on the data interface, not on the hardware

itself.

27 Ancillary Services TransCo In as much as ancillary services are part of pass Ancillary Services compliance is monitored


29

thru billing to consumers, is NGCP monitoring

compliance of providers to such. Why is it not

included in your submission? What is submitted

is just the nomination.

through Dispatch Instruction response and

through RTU. Monitoring device (RTU) is a pre-

requisite of AS scheduling to ensure

compliance. Upon non-compliance of AS

provider at a certain interval, scheduled

capacity is not paid. This can be verified every

billing period.

28 Sub transmission

Assets

DECORP When the RSTAs were reverted back to

transmission lines that means they will fall part

of the mark. Does this mean even those utilities

who bought their 69 kV sub transmission lines

will be paying the revenue requirements for

these RSTAs?

Based on the recent resolutions of ERC, RSTAs

are now part of the transmission system. NGCP,

being the agency in-charge of the maintenance

and operation of the grid, will have to treat

these RSTAs as transmission assets.

29 Tariff CEPALCO Does NGCP plan on instituting a point-to-point

determination of tariff than the postage stamp

system for the transmission grid? It’s going to

be unfair if NGCP will grant preferential tariff to

CASURECO.

NGCP only provides network service, so it is still

a postage stamp methodology. We have

received CASURECO’s request for the cost of a

specific transmission service for a point

connected to the plant of Agus. NGCP is not

encouraging any design of special rates.


30

Table 3 Luzon Grid Issues

Issues Concerned

Party


1 New Growth Areas DOE The Secretary inquired on heavily-loaded

corridors and substations in Metro Manila

and if the necessary expansions are included

in the plan.

Among the substations that continue to exhibit

significant growth are Dasmarinas and Las Piñas, both

of which have been allocated with additional

transformers.

DOE Adequate transmission facilities must be

ensured for new growth areas such as Clark

Economic Zone, where the newly-developed

international airport will be expanded, the

former U.S Naval Station in Sangley Point

(Cavite), and Panay.

NGCP will consider in the next TDP the demand

forecast in these areas. The Secretary assured NGCP

that DOE will provide updates and information on

potential economic growth areas.

It is challenging to develop new 69kV

substation in South Mexico because there’s a

difficulty in locating a feasible space for the

proposed plant. Can NGCP perhaps consider

another substation between Concepcion and

Mexico to take care of growth in Clark for us

to be able to tap in 230kV line in the next 10

years?

It is a good thing that the TDP is updated annually.

NGCP recognizes the needs in Mexico and already had

internal discussions to address these needs. NGCP will

make sure that in the 2012 TDP, the needs of Clark

will be considered in the expansion plans.

2 San Gabriel 500 MV

Project

TransCo So San Gabriel 500MW is a confirmed

project. When is the target initial

synchronization? Do you have a timeline for

their activities?

NGCP refers to the year when the power plant is

expected to be online as its reference in pursuing any

associated transmission project.

3 Ambuklao Substation

TransCo Is there still a need to uprate in as much as

the existing 795 conductor could still

accommodate the 105 projected generation

of Ambuklao? Is the line that very old?

Yes. One of the circuits is constructed in 1950s and

the main consideration is Magat Hydro expansion.


31

TransCo What is the relationship of Magat expansion

project to this one?

Project was developed for the Ambuklao repowering

and Magat expansion.

4 San Jose S/S’s

TransCo On the NGCP’s plan to put up a fifth (5th)

bank transformer in San Jose SS, may we be

clarified why there is a need for N-2 in this

SS? Is this really necessary? Won’t the 5th

bank purpose would just be for aesthetic in

as much as the four banks in existence can

accommodate the N-1 requirement?

If you intend to transfer that later to the new

Antipolo cut in why the need to procure it in

advance? We will just spending additional for

the hauling, dismantling, hauling and

assembling plus all the tests in the new

Antipolo cut in?

Would it not be more practical to have the

supposed “5th” bank at San Jose be part of

the new Antipolo cut in at the 4th regulatory

as NGCP had envisioned?

This has been substantially discussed before in the

meeting/s with DOE and TRANSCO. A report on this is

being finalized to reflect NGCP’s final position on the

issue and which will form part of NGCP’s submissions

to the ERC when it files the project for Provisional

Approval.

MERALCO Recommended to convert from ring bus to

breaker and a half scheme.

NGCP is considering the recommendation, however, a

shutdown is difficult to schedule. Upon the

development of Antipolo Substation the

reconfiguration can be implemented.

5 Antipolo S/S

TransCo On the proposed Antipolo SS, can you

enlighten us on the reasons/logic of the

proposal and what are benefits of this?

This is discussed in Section 5.2.1.6 of the 2011 TDP

Consultation Draft.

6 C-6 Circumferential

Road Development

DOE Kindly consider the C-6 route for the

development of the 500 kV transmission

backbone.

As suggested, NGCP will consider the C-6 route in

developing the 500 KV transmission backbone to

strengthen the network serving Metro Manila and the


32

suburbs. NGCP will coordinate with DPWH/MMDA

and will also study a proposed third option for the

backbone, i.e., along the Laguna De Bay.

7 GNPower Associated

Lines

DOE DOE asked for any updates regarding the

project.

NGCP is encountering delays in the implementation of

associated transmission lines for Mariveles Coal-fired

Power Plant (GNPower). As a measure, the

contingency line will be in place before the end of

2011.

8 Araneta-Sucat 230

kV Line

TransCo There is a SC decision to decommission

Araneta-Sucat 230kV line. How did you

address this in your TDP?

No capex was proposed for the Third Regulatory

Period for the re-routing of the Sucat-Araneta line

because it is unfair for the consumers to be paying in

advance the cost of the project when there is no final

decision yet on the issue.

9 System operations

Aboitiz Power There’s a limitation in the Makban- Kalayaan

line every time it runs out of supply during

summer season.

NGCP will look into this.

10 San Jose-Angat Line

MERALCO There are 3 directly-connected customers

(DCC) in the area, upon acquisition of

TransCo facilities by MERALCO only the 3

DCC will not become customers of

MERALCO. Would NGCP allow MERALCO to

build lines in the area to supply the 3 DCC?

The capacity of the ERC-approved San Jose-Angat Line

Project of NGCP is designed to replace the three

existing old circuits. Thus, building additional lines is

no longer necessary but a switching station only to be

constructed along the new San Jose-Angat Line and

this will serve as the connection point of the 3 DCC.

11 Transmission loop

project in northern

Luzon

Hedcor Aboitiz Are there new plans in Mt. Province, from La

Trinidad to MOPRECO? We are planning to

connect on the 69 kV single circuit line in

there.

NGCP already included this on its 2012 activities.

12 La Trinidad-Calot 69

kV transmission line

Hedcor Aboitiz There are seven power plants connected in

the said line. This is a single circuit line which

makes it unreliable and declared as a

transmission asset by the ERC.

ERC clarified this line as transmission asset.NGCP

needs ERC approval prior to implement the

rehabilitation/expansion of the said line.


33

13 New Ambuklao and

Binga transmission

lines

SN Aboitiz

Power Benguet

What is the timeline in upgrading these

lines?

NGCP concentrates on area where there is a lot of

trippings. We conduct refurbishment of the whole line

(comprehensive maintenance).

14 Calamba S/S MERALCO What is the connection scheme being

planned by NGCP?

Initially cut-in, eventually bus-in scheme. Although the

approved budget is only for radial connection.

MERALCO What is the timeline of the project? Earliest is January 2012.

MERALCO If radially connected, will NGCP charge

MERALCO or divest the line?

As per Resolution 16, it’s a connection asset.

15 RP Energy Project

MERALCO Clarification why the line in the presentation

is only 49 Km.

The total length of the line is 57 Km, 49 Km + 8Km line

to Hanjin.

MERALCO Will the NGCP Mancom already decide on

the connection scheme for Hanjin

Substation?

We hope it can be decided soon.


34

Table 4 Mindanao Grid Issues

Issues Concerned

Party


1 N-1 Issues

FIBECO Main concern is the power outage we

experience every time power outage or

interruption occurs in Maramag or Kibawe

lines. In planning, have you considered a

substation project along Tagoloan and

Maramag?

NGCP has not received any information yet with regard

to the proposed substation between Tagoloan and

Maramag. The proponent is advised to submit a

proposal to NGCP for evaluation.

2 Agus-Kibawe Line 2

Project

TransCo What is your long term plan for the Agus-

Kibawe Line 2? With the new 230kV, does

NGCP intend to continue repairing it?

NGCP will continue to repair it. But once we have the

backbone which is located in a safe area, it is easy to

secure the new backbone system.

TransCo What is the status of the project? The Agus-Kibawe Line 2 project is already energized.

3 Growth Rate GMC We’re surprised with the growth rate of

Mindanao (5,320 MW) against that of Visayas.

Is this 5,320 MW an annual average growth?

Yes, that is the annual average growth rate.

4 Bunawan Project Davao Light

and Power

Company

Inquired for any updates on DLPC’s Bunawan

project application.

NGCP to check the status of the said application.

5 Rizal S/S Conal

Holdings

Corporation

The basis of this project is to support

Tampakan, what if Tampakan won’t push

through?

The project may not also push through. It will be up to

ERC to approve the proposed project. The regulator is

adopting a wait-and-see approach when it comes to

transmission projects that are associated with new

power plants.

6 Transmission Loss Is NGCP considering recomputing the

transmission loss of Mindanao?

NGCP on a monthly basis does compute the

transmission losses. Nothing bars NGCP from filing with

or informing ERC. NGCP provides regular updates on

this to GMC. NGCP is still waiting on what will ERC say

on the information that we’re giving to GMC every

month.

7 Transmission Line Aboitiz Is the scheme for the associated transmission NGCP has an ongoing GIS for this and NGCP has


35

line for the coal power project in Davao

already finalized?

requested additional information to proceed with the

grid impact study.


36

Table 5 Visayas Grid Issues

Issues Concerned

Party


1 Generation Capacity

Addition

TransCo May we know the load of Panay-Negros-Cebu

and the incoming of plant in Panay? So that

we can fully appreciate the recommended

projects.

Actually, it is already included in the 2011 TDP report.

Based on NGCP’s assessment, the load in Panay is lower

as compared to the total capacity additions in Panay.

Eventually, there will be an excess power that will be

exported to Negros and then to Cebu.

Will there be a third line for the Panay-Negros

submarine connection to accommodate the

proposed 420 MW power plant in Panay?

NGCP has two options to accommodate the proposed

420 MW power plant in Panay. First is 230 kV

transmission line backbone which can accommodate

the full capacity, and the second option is the second

circuit of the 138 kV line. NGCP recognizes that the

second 138 kV line cannot accommodate the full

capacity but due to the high cost of 230 kV line, NGCP is

leaning towards the second 138 kV line. NGCP then will

monitor the status of the incoming power plants and

propose a third line to accommodate the other

incoming power plants should it be needed. Ideally

power plants should be constructed near load centers

to minimize the reinforcement of the transmission

lines.

TransAsia

Renewable

Guimaras

Is 54 MW Wind Farm project in Guimaras

included in your transmission plans?

During the Third Regulatory reset application with the

ERC, there is no complete information yet on the 54

MW wind capacity, the reason why the transmission

reinforcement is not included in the 3rd Regulatory

application.

2 Bohol Backbone

Transmission Project

DOE DOE inquired for any updates on the project. The project is expected to be completed in July 2012.

The new 138 KV Substation located near Tagbilaran

City, a component of the project, will improve the

reliability of power supply in Panglao Island - a major


37

tourist destination.

3 Transmission Line

San Miguel

Corporation

Raised their concern regarding the

proliferation of 138 kV transmission voltages

in Visayas because accordingly 138 kV is just

for short lines. Suggests pursuing plans of

stringing 230 kV lines in Cebu-Negros-Panay

for a more stable interconnection.

NGCP is technically in favor of a 230 kV backbone to

increase reliability, security and accommodate the

sharing of generation in Cebu-Negros-Panay. But

looking at the cost of building 230 kV transmission

lines, it is very expensive and NGCP has to balance

technical and economic considerations including

optimization of the transmission assets for a period of

10 to 15 years.

San Miguel

Corporation

Suggests to extend 230 kV lines further down

Cebu and then transform it directly to 69 kV

for the use of utilities and other directly

connected consumers rather than

transforming to 138 kV and then to 69 kV, to

avoid double transformation losses.

For voltage problems, there is the option of using

reactive compensation which may be cheaper than

outright implementation of higher transmission

voltage. Upgrading to higher voltage level needs

extensive study.

4 Negros-Panay

Interconnection

Project

TransCo What’s the justification of the Negros-Panay

interconnection project. The reasoning stated

in the TDP 2011, which is voltage regulation, is

quite misleading.

Project is developed to accommodate increased power

flow to Panay because of the entry of new power

plants. Voltage regulation is the secondary reason.

Aklan Electric

Cooperative

According to your presentation, the uprating

of the Negros-Panay interconnection is based

on the entry of new power plants. Did you also

consider the present congestion affecting the

distribution utilities in Panay, because when a

power plant shutdowns we are forced to

implement Manual Load Dropping? Can you

implement the uprating project earlier?

NGCP reiterates the main reason for the project is the

entry of the new power plants as it affects the

proposed capacity of the Negros-Panay interconnection

and the worst case scenario in terms of determining

the need to uprate the Negros-Panay link. NGCP also

recognizes that this project is also very critical to the

DUs in Panay. NGCP has been receiving request to

implement the project as early as last year.

NOCECO Regarding the proposed PhP 36 Billion, 230 kV

line from Cebu to Negros to export the excess

NGCP recognizes that sometimes the transmission

solution may not be the cheapest one and a generation


38

capacity in Panay. What if a 200MW power

plant in Negros is constructed, what will be its

significant effect on that line? Would it not be

cheaper just to construct a power plant in

Negros?

solution will be better. The key here is to coordinate

with DOE which oversees the generation projects. For

NGCP, if there will be no other solution it will be forced

to implement the project.

5 Colon-Cebu 138 kV

T/L

Global

Business

Power

Corporation

We are monitoring the progress of the on-

going projects, like the Cebu-Colon

transmission line. Can we have an updated

timeline of these projects?

NGCP provided the status of these on-going projects

during the meeting.

6 Reliability

Orica Nitrates Aside from the 50 MVA additional

transformers on the Amlan Substation, Do you

have any developments on the 69 kV

transmission line from Amlan to Dumaguete?

We are patronizing the 69 kV line but we are

having some problems on the voltage input in

our plant, it seems that the 69 kV line is

overloaded. Can we ask for a timeline on

when the developments are going to be

implemented?

NGCP proposed an additional transformer in Amlan

Substation because the existing 50 MVA transformer

may not be sufficient. The 69 kV transmission line has

the same capacity so it follows that it may not be

sufficient in the near future. But as to the 69 kV

transmission line, a subtransmission asset undergoing

divestment, NGCP will have to coordinate with the

concerned distribution utility (DU) because they have

the responsibility and the first say on upgrading the

line. NGCP can also upgrade the line but will have to

recover the investments through subtransmission

charges. It’s better to set a meeting with the concerned

DU to determine what the recommended action plan is,

on whether or not NGCP will implement the project.

7 Cebu-Mandaue-

Lapu-lapu T/L

VECO In the Cebu-Mandaue-LapuLapu transmission

line and substation project your estimated

time of completion is 2015. Can you

reconsider the timeframe because LapuLapu is

now at 125 MVA with 7% increase per annum?

By 2015, the current transformers will be

loaded at 95%.

As much as NGCP wants to accelerate the project, it is

aware of the difficulty in implementation because the

area is heavily populated and the proposed project is

an underground cable which can cause obstruction

during construction. NGCP will be coordinating with the

concerned agencies like the DPWH and investigate the

capacity of the bridge if it can carry the additional

cables or if it needs to consider another option. NGCP is

also implementing other projects in order to address

the additional load in Mandaue and Mactan.


39

8 O&M

Southern

Leyte Electric

Cooperative

Your immediate answer on how to resolve the

issue on implementing maintenance works on

the Ormoc-Maasin 138kV line and Maasin-

Bontoc 69 kV line without getting the whole of

our coverage area (Maasin-Bontoc-

Himayangan 69 kV substations) interrupted.

Can you give us a timeline for the upgrading of

the Babatngon substation because it is our

alternative line aside from our main supply in

Maasin substation?

NGCP has two proposed projects that will address your

concerns: First, on the maintenance works on Ormoc-

Maasin, is the second circuit stringing of the 138 kV line

from Ormoc to Maasin substations and the second is

the additional transformer in Babatngon which is your

alternative supply. However, the single circuit 69 kV

line in Babatngon is already divested to Leyeco II which

has the same capacity as the existing 1-50 MVA

Babatngon substation. So if you shift your load to

Babatngon the constraint on your load will be on the 69

kV transmission line even though NGCP has already

upgraded the transformers in Babatngon. You may

have to coordinate with Leyeco II.

9 138 kV Looping of

Panay

When do you expect to finish the loop

transmission line of Panay?

The project in Panay that will loop the island is the

Southern Panay 138 kV Backbone Transmission and the

Culasi-San Jose 69 kV Transmission line. The Southern

Panay (Sta. Barbara-San Jose) is an on-going project

with a target date of completion on the 4th quarter of

2012. Culasi-San Jose is in its pre-construction stage

and the contract will be awarded in July 2012 and

target date of completion is October 2013.

10 2nd Cebu-Negros 138

kV Line

May we ask for a clarification regarding the

submarine cable that is supposed to connect

additional capacity to Panay? Why is it that

230 kV is presented to ERC when the existing

submarine cable is only 138 kV? Is it possible

to construct it at 138 kV rather than 230 kV?

What was proposed to ERC in 2005 for the Negros-

Panay second circuit is a 138 kV line. What NGCP is

presenting in the public consultations is an option for a

230 kV backbone and another option for the 2nd circuit

138 kV line. A 230 kV line is proposed to significantly

reduce the length of the backbone, from north Cebu to

cross directly to Negros and because there is a plan to

construct a 200 MW power plant in Panay. However,

the cost estimate is about PhP 36 billion. The 230 kV

Cebu-Negros is just an option. At this point, NGCP is


40

leaning towards the 138 kV option.

11 Ancillary Services

NOCECO The provision and acquisition of ancillary

services in the Visayas to prevent manual load

dropping during day peak and night peak and

once a plant or a line is out.

NGCP is currently looking for ancillary service provider

in Visayas. Right now the remaining power plants of

NAPOCOR and the geothermal power plant in

Palinpinon are the only ancillary service providers.

NGCP is asking the power plants to provide ancillary

services, but according to them they don’t have enough

capacity. Last March 2011 NGCP went out and publish

in the newspaper to ask for ancillary services provider

in the Visayas and Mindanao and it is going to publish

again.

12 Catbalogan-Calbayog

69 kV T/L

SAMELCO II Is the Catbalogan-Calbayog 69 kV line being

decommissioned after the energization of the

Calbayog 138 kV line?

That was the original plan, to decommission the 69 kV

Catbalogan-Calbayog, but we are not pushing through

with it.

Annex A

Pro-forma Invitation

Annex B

Broadsheet Publications

Philippine Daily Inquirer The Philippine Star

December 10, 2011 December 11, 2011

Annex C

DoE Meeting Highlights

Annex D

List of Participants

Luzon Public Consultation

Mindanao Public Consultation

Visayas Public Consultation

Consultation with PEMC

Consultation with Grid Management Committee and Distribution

Management Committee

Consultation with MERALCO

Consultation with the National Transmission Corporation (12 September

2011)

Consultation with the National Transmission Corporation (04 January 2012)

www.ngcp.ph

consultation report

Documents